National Elevator Industry Welfare Plan v. Viola Industries, Inc.

684 F. Supp. 1560, 1987 U.S. Dist. LEXIS 4678, 1987 WL 45780
CourtDistrict Court, D. Kansas
DecidedMay 6, 1987
DocketCiv. A. 84-2286-S
StatusPublished
Cited by4 cases

This text of 684 F. Supp. 1560 (National Elevator Industry Welfare Plan v. Viola Industries, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Elevator Industry Welfare Plan v. Viola Industries, Inc., 684 F. Supp. 1560, 1987 U.S. Dist. LEXIS 4678, 1987 WL 45780 (D. Kan. 1987).

Opinion

MEMORANDUM AND ORDER

SAFFELS, District Judge.

This matter is before the court to determine the amount of contribution to which plaintiff plans are entitled and the amount for which defendants are liable. A hearing was held on February 27,1987, wherein the court heard defendants’ objections to the auditor’s report. At the conclusion of the hearing, the court instructed the parties to submit briefs. The court is now in receipt of said briefs and is prepared to rule.

Before addressing the specific amounts disputed, the court must determine the effect that the recent decision rendered by the National Labor Relations Board [hereinafter “NLRB”] in Deklewa and International Assoc. of Bridge, Structural and Ornamental Iron Workers, Local 3, AFL-CIO, No. 6-CA-16819 (N.L.R.B., unpublished, Feb. 20, 1987), has on our earlier ruling. The decision in Deklewa presents a sharp departure from precedent relied on in the Court’s Memorandum and Order filed on April 30, 1986. This court, at first glance, questioned whether the law enunciated in Deklewa should be applied retroactively to the issues raised in our case. The NLRB answered this question. “The Board’s usual practice is to apply new policies and standards ‘to all pending cases in whatever stage’ (citations omitted).... Such a balancing test applied here leads to the conclusion that the Board’s usual practice of retroactive application is appropriate.” Deklewa, N.L.R.B. slip op. at 40-41. The court therefore finds that it must reexamine its Memorandum and Order filed on April 30, 1986, and modify its order to conform to the recent ruling of the NLRB. The court will now examine the time periods in question as outlined in defendants’ objection.

JULY 18, 1979 THROUGH JULY 8, 1982

In defendants’ memorandum in opposition to plaintiffs’ audit report filed on March 19, 1987, the defendants make no argument as to the accuracy of the number of hours identified by the auditor for the period of time from July 18, 1979 through July 8, 1982, with the exception of the hours reflected by the amount $293.60. Defendants dispute the amount of $293.60 owed as they claim Terry Skinner was a probationary employee. After reviewing the record, the court finds that the auditor’s report correctly computed the contributions due for this period of time. The court finds that defendants have not met their burden of establishing that there was conclusive evidence to support their claim that the auditor’s inclusion of Terry Skinner was erroneous. See Thompson v. Kerr-McGee Refining Corp., 660 F.2d 1380, 1388 (10th Cir.1981). In conclusion, the court finds that the defendants shall be liable for the total amount of $4,748.89 for the period of July 18, 1979 through July 8, 1982.

JULY 8, 1982 THROUGH DECEMBER 14, 1982

Defendants contend that the decision in Deklewa mandates that there is no basis for imposing liability on the defendants for this period of time. Defendants argue there was no contract in effect during this period. Defendants cite to the NLRB’s abandonment of the conversion theory and the presumption of a continuing obligation to terms of a contract after its expiration. In the Court’s Memorandum and Order filed in this case on April 30, 1986, the court cited to the decision in Hageman Underground Construction, 253 N.L.R.B. 7, 105 L.R.R.M. 1385, 1387 (1978), for its ruling that once majority status is maintained it is presumed for the duration of the agreement. Slip op. at 19. The court also found that a presumption of majority status carried over from the 1977-82 agreement to the 1982-87 agreement, including *1562 the period of July, 1982 to December, 1982, when no contract existed.

In Deklewa, the NLRB found that under its new interpretation, “upon the contract’s expiration, the signatory union will enjoy no majority presumption_” Slip op. at 32. The court found that under the facts presented in Deklewa, that after the contract in issue expired, the union enjoyed no continuing presumption of majority status and the defendant was not compelled to negotiate or adopt a successor agreement based on the existence of a section 8(f) relationship. Slip op. at 42-43. Based on this recent ruling in Deklewa, the Court finds that it must modify its Memorandum and Order filed on April 30, 1986, to reflect this new interpretation by the NLRB. The Court therefore modifies its Memorandum and Order of April 30, 1986, to reflect that defendants are not liable to the plaintiffs for contributions during the period of July 8, 1982 through December 14, 1982. The court finds that no majority status should be presumed and there was no obligation on the part of the defendants to adopt a successor agreement after the 1979-82 agreement expired. The court therefore finds that the auditor’s determination in the amount of $13,020 for this period should be disallowed.

DECEMBER 14, 1982 THROUGH NOVEMBER 4, 1983

This period encompasses the date on which the 1982-87 agreement was signed until the date of repudiation. In its Memorandum and Order, the Court found that the defendants’ contention of coercion did not act as a defense to the enforceability of the 1982-87 agreement. Defendants again state that coercion by the union may relieve defendants of its liability to make contributions during this period. The defendants contend that the issue of coercion is not appropriate for summary judgment. More importantly, the defendants state that the Administrative Law Judge (AU) found that it was likely that coercion was used by the union to force the plaintiffs to enter into the 1982-87 agreement. The defendants further represent that the issue of whether Viola Industries voluntarily entered into the pre-hire agreement is pending before the NLRB at this time.

In response, plaintiffs argue that the defendants never raised the issue of coercion before the AU or on appeal to the NLRB; thus, it is unlikely that the NLRB will raise this issue sua sponte. The plaintiffs further state that the AU not only did not find that there was coercion, but ruled that “[t]he respondents do not argue on brief that this pressure invalidates the agreement, evidently in recognition of the settled Board doctrine that such a defense is barred by section 10(b).” Viola Industries-Elevator Division, Inc., Case No. 5-CA-15990, slip op. at 21 n. 35 (N.L.R.B., unpublished, Mar. 27, 1985). The court finds no support for the defendants’ contention that this court should not rule on the contributions due, if any, for this period of time. The defendants’ defense of coercion does not have support in the facts or the law. The court therefore finds that defendants should be liable to the plaintiffs for contributions during this period of time. After reviewing the documents submitted by the parties, the court cannot ascertain the amount due for this period of time. The court does find, however, that the auditor’s report should be followed, and defendants should be liable to the plaintiffs for contributions in the amount specified by the auditor’s report.

NOVEMBER 4, 1983 TO THE PRESENT TIME

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684 F. Supp. 1560, 1987 U.S. Dist. LEXIS 4678, 1987 WL 45780, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-elevator-industry-welfare-plan-v-viola-industries-inc-ksd-1987.